Key takeaways
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USDT’s total market capitalization is approaching its record high of $84.1 billion.
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Tether’s recovery could help trigger a broader crypto market rally.
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Metacade could be among the biggest beneficiaries thanks to the project’s large potential.
The cryptocurrency market has been in a downward cycle since 2021, with prices of many coins and tokens falling more than 50% from their all-time highs. However, market sentiment has improved this year, with Bitcoin and other major cryptocurrencies rising more than 40% year-to-date.
One of the most notable positive developments this year is the recovery of USDT, the stablecoin issued by Tether. USDT remains the largest stablecoin by market capitalization, and its rebound could signal better times ahead for the crypto market.
Does USDT’s recovery indicate a coming bull cycle, and should investors consider buying cryptocurrencies such as Metacade?
USDT’s market cap surpasses $83 billion
USDT, the world’s leading stablecoin by market capitalization, has mostly weathered the stresses of the bear market. Its total market cap recently crossed $83 billion, close to the record high of $84.1 billion reached on 10 May 2022. Data from CoinMarketCap shows USDT’s market cap hit around $83.5 billion earlier, suggesting the stablecoin is performing as strongly as it did during the previous bull cycle.
What does Tether’s recovery mean for the crypto market?
Tether’s recovery is a positive sign for the broader cryptocurrency market, arriving after a period of regulatory uncertainty and banking turmoil in the United States. The collapse of Silicon Valley Bank significantly impacted the market capitalization of USDT’s closest rival, Circle’s USDC. As a result of that crisis, USDC’s supply fell from nearly $47 billion to about $27.8 billion.
With USDT now close to its record level, concerns about a liquidity crunch in crypto may ease for many investors.
Data provider Kaiko noted that the rising USDT market cap does not appear to be driven by a significant increase in trading volume. The firm stated that the data “does not show any meaningful gain in USDT market share (measured by trading volume) relative to other stablecoins over the last couple of months, largely due to Binance promoting TUSD as an alternative to BUSD.”
Kaiko also suggested the increase in USDT could reflect offshore trading activity among market makers and large whales rather than a surge in retail usage.
How might this affect projects like Metacade?
USDT’s recovery should boost the broader crypto market. Historically, Bitcoin tends to perform well when overall USDT supply grows. With USDT once again near its record high, that could benefit Bitcoin and other cryptocurrencies.
MCADE, the native token of the Metacade ecosystem, could be a notable winner if the market strengthens.
Metacade has held up relatively well over the past seven days despite modest losses across the wider market. At the time of writing, Metacade’s price sits around $0.02111, down about 1% over the past 24 hours but up more than 5% from the recent weekend low of $0.01954.
Despite recent gains, MCADE remains down roughly 53% from its all-time high of $0.04569. That decline could offer an attractive entry point for some investors.
Metacade has significant potential within the GameFi space, making it a token that some investors may want to consider. The project is built on the Ethereum blockchain and aims to launch a play-to-earn ecosystem that delivers new Web3 experiences for users.
Metacade’s stated goal is to enable players to play, connect, build, and earn seamlessly. The team is also working toward turning Metacade into a decentralized autonomous organization (DAO) by next year, which would further decentralize governance.
Should you buy Metacade now?
Metacade is a relatively new project, and its token price has fallen more than 50% from its all-time high, meaning MCADE may be trading at a discount. However, any investment decision should be based on the project’s fundamentals and long-term potential.
As noted, Metacade aims to evolve the play-to-earn model by offering fresh Web3 experiences. The development team has already raised $16 million in a recent presale and is actively building its P2E ecosystem. The token is live on Uniswap, MEXC, and BitMart, and the team is pursuing listings on additional major cryptocurrency exchanges.